Stock prices for Apollo soar to new heights amidst financial turbulence triggered by Donald Trump's import tariffs.
Apollo Shines in Q2 2025, Posting Robust Financial Performance
Apollo Global Management, the American investment firm, has reported a robust financial performance in Q2 2025, driven by active capital deployment, strategic acquisitions, and diversification.
The company led the financing for Thoma Bravo's acquisition of Boeing unit Jeppesen, beating out a funding package led by Blackstone. This victory underscores Apollo's ability to navigate market volatility, a strategy that has been central to their approach during the economic uncertainties of 2025.
In Q2, Apollo performed exceptionally well. The transformative acquisition of Bridge Investment Group for $1.5 billion expanded their real estate equity/credit leadership, adding 300 experts and $50 billion in assets under management (AUM). The firm's credit strategies accounted for 80% of their AUM, fuelled by $260 billion in origination over 12 months and 12% annual returns, outperforming peers.
Apollo also diversified into infrastructure, Japan private equity, and energy transition assets, creating a $275 billion joint-venture platform with JPMorgan and Goldman Sachs. These strategic moves have boosted their AUM to a record high of $840 billion.
The company reported record Fee Related Earnings (FRE) of $627 million in Q2, a 22% increase from the previous year. This strong performance was further bolstered by inflows, raising their total AUM. They also announced adjusted net income of $1.179 billion ($1.92 per share), beating analyst expectations.
In addition, Apollo declared a dividend of $0.51 per share and maintained a forward P/E of 9.8x, reflecting an undervalued position for long-term investors with a $1.5 trillion AUM target.
Apollo raised $11.7bn through funding agreements with Federal Home Loan Banks in the second quarter. Two-thirds of the fresh capital came from Apollo's asset management arm. The firm has set a goal of originating $275bn of deals a year by 2029.
Despite these impressive figures, Apollo's shares have lagged the benchmark S&P 500 this year, losing 13.5%. However, Apollo's CEO, Marc Rowan, informed investors that the company had accelerated its investments as markets slid. Apollo deployed a record $90bn during the second quarter, originating $81bn of transactions.
The retirement unit of Apollo reported spread-related earnings of $821mn, up nearly 16%. Notably, the acquisition of Irradiant Partners accounted for about $12bn of the rise in Apollo's asset base.
In other news, Apollo agreed to provide £4.5bn in loans to electricity group EDF for investments in the UK's Hinkley Point C nuclear power station. However, no new information about investments following President Donald Trump's tariffs announcement or the loan agreement with EDF was provided.
The funding agreements that Apollo uses must be repaid, but the company believes its investment team can earn more on those borrowings than they cost. Apollo was active in investing following President Donald Trump's tariffs announcement, although no specific details were disclosed.
In conclusion, Apollo's robust Q2 2025 financial performance and positive market outlook are underpinned by their ability to lean into market volatility through active capital deployment and operational focus, combined with strategic acquisitions and diversification.
- Apollo's investment strategies in the finance sector, such as their successful financing for Thoma Bravo's acquisition and the strategic diversification into infrastructure and energy transition assets, have contributing significantly to their business growth and the expansion of their assets under management (AUM).
- The impressive financial performance of Apollo in Q2 2025, characterized by record Fee Related Earnings (FRE), increased total AUM, and high returns, not only reflects their strong position in the investment market but also positions them as a potential long-term investment option for lifestyle-oriented investors.
- Despite some shortcomings in the stock market performance of Apollo's shares, the company's active approach to investment, as evident in their record $90bn deployment during the second quarter, indicates a commitment to capitalize on market volatility and maintain their leadership position in various finance-related markets.
